Shipping plays a vital role in global trade, connecting businesses and consumers worldwide. Two commonly used terms in the logistics industry are “freight” and “cargo.” While both refer to the transportation of goods, they are not identical in meaning or application.
Understanding the differences between freight and cargo is essential for online sellers, logistics professionals, and businesses to make informed decisions about their shipping needs.
What is Cargo Shipping?
Cargo shipping refers to the transportation of goods, typically by ship or aircraft. The term “cargo” is predominantly used in the context of international trade, where goods are transported across borders. Cargo can encompass a wide variety of items, from small parcels like mail to large containers filled with consumer products or raw materials.
Cargo is an important element in global trade, ensuring that goods reach their destinations efficiently and safely. Unlike freight, cargo specifically pertains to goods and excludes any reference to financial aspects like transportation charges.
Types of Cargo
General Cargo
General cargo refers to goods that are packaged and can be easily loaded and unloaded. Examples include electronics, clothing, and household items. These goods are typically packed in containers, boxes, or crates for safe transportation.
Bulk Cargo
Bulk cargo includes large quantities of unpackaged goods, such as grains, coal, and oil. These are transported in specialized vessels or containers that are designed to handle loose, heavy materials.
Break Bulk Cargo
Break bulk cargo consists of oversized goods that cannot fit into standard containers. Examples include machinery, vehicles, and construction materials. These items require specialized handling and equipment during loading and unloading.
What is Freight Shipping?
Freight shipping refers to the transportation of goods via trucks, trains, air, or ships. While the term “freight” is often used interchangeably with cargo, it is primarily associated with commercial goods and includes financial connotations, such as freight charges.
Freight shipping is widely used for domestic and regional transportation, though it can also apply to international trade. Unlike cargo, which focuses solely on the goods, freight encompasses both the items being shipped and the costs associated with their transportation.
Types of Freight
Full Truckload (FTL)
FTL involves transporting a full truckload of goods from one point to another. This method is cost-effective for large shipments that can occupy an entire truck, ensuring dedicated transportation without stops or transfers.
Less Than Truckload (LTL)
LTL is ideal for smaller shipments that do not require a full truckload. Multiple shipments are combined into one truck, making this method more economical for businesses with smaller loads.
Intermodal Freight
Intermodal freight involves the use of multiple modes of transportation, such as trucks, trains, and ships, to move goods. This method is particularly efficient for long-distance and international shipments, optimizing cost and time.
Cargo vs. Freight: A Detailed Comparison
While both cargo and freight refer to the transportation of goods, there are significant differences between the two in terms of mode of transport, usage context, and financial implications. Below is a detailed comparison of cargo and freight:
| Aspect | Freight | Cargo |
|---|---|---|
| Definition | Refers to goods transported over land, sea, or air, often with a financial connotation. | Refers exclusively to goods transported, typically via ships or aircraft. |
| Mode of Transportation | Trucks, trains, ships, or aircraft. | Ships or aircraft (primarily). |
| Usage Context | Commonly used for domestic or commercial shipping. | Primarily used in international trade and large-scale transportation. |
| Financial Implication | Includes charges for transportation (e.g., “freight charges”). | Refers only to the goods being transported, with no financial implication. |
| Volume | Typically associated with bulk shipments requiring special handling. | Includes both bulk and smaller, packaged goods like mail. |
| Packaging | Requires specialized packaging for bulk transportation. | May involve general packaging for small or bulk items. |
| Historical Usage | Associated with land transport and cost aspects. | Traditionally used for goods moved by sea or air. |
Mode of Transportation
- Cargo: Cargo is primarily transported by ships or aircraft, making it synonymous with international trade. For instance, large shipments of electronics or raw materials transported across oceans are referred to as cargo.
- Freight: Freight can be transported via truck, train, ship, or aircraft. It is commonly used for domestic transportation but can also extend to international trade. For example, goods delivered by trucks within a country or by freight trains across regions fall under this category.
Usage Context
- Cargo: The term “cargo” is predominantly used in the context of international trade. It is associated with goods transported across borders and does not include smaller, personal shipments.
- Freight: Freight is used in the context of both domestic and commercial shipments. It includes goods transported within a country or region and is often associated with larger-scale operations like supply chain logistics.
Financial Implications
- Cargo: The term “cargo” refers exclusively to the goods being transported. It does not encompass the financial charges or costs associated with transportation.
- Freight: Freight has a financial aspect, referring not only to the goods but also to the charges for transporting them. Terms like “freight charges” and “freight costs” are common in logistics.
Volume and Packaging
- Cargo: Cargo can include both bulk and smaller, packaged goods. For instance, mail and large containers of products transported via ship are both categorized as cargo.
- Freight: Freight usually refers to goods transported in bulk, often requiring specialized handling and packaging. For example, raw materials transported via freight trucks are considered freight.
Historical Usage
- Cargo: Historically, the term cargo was used exclusively for goods transported via ships or planes. Over time, its usage has expanded, but it remains closely tied to international trade.
- Freight: Freight was traditionally associated with goods transported via trucks or trains. Today, the term is used more broadly, though its financial implications remain a key differentiator.
Similarities Between Freight and Cargo
Despite their differences, freight and cargo share several similarities:
- Purpose: Both terms refer to the transportation of goods from one place to another.
- Logistics Integration: Both play a critical role in the supply chain, ensuring timely delivery of goods.
- Flexibility: Modern logistics has blurred the lines between freight and cargo, with both terms now used for importing and exporting goods via various modes of transportation.
Key Considerations for Choosing Freight or Cargo Shipping
When selecting between freight and cargo shipping, businesses must consider several factors to ensure efficient and cost-effective transportation:
- Nature of Goods: For international trade or specialized items like machinery, cargo shipping may be more suitable. Freight shipping is ideal for domestic transportation or bulk goods.
- Cost Implications: Freight charges often include additional fees, such as fuel surcharges or handling costs. Cargo shipping costs may vary based on the mode of transportation and the size of the shipment.
- Delivery Speed: Air freight or cargo is faster but more expensive, making it ideal for time-sensitive goods. Sea cargo or freight by train is cost-effective for non-urgent shipments.
- Packaging Requirements: Goods transported as freight often require specialized packaging to ensure safe handling during transit. Cargo packaging depends on the type of items being shipped.
- Mode of Transportation: Businesses should select the mode of transportation that aligns with their budget, timeline, and logistical needs.
Simplify Your Shipping with SFL Worldwide!
Freight and cargo are integral components of the logistics and supply chain industry, facilitating the movement of goods worldwide. Cargo shipping is typically associated with international trade, involving the transportation of goods via ships or aircraft. Freight shipping, on the other hand, is more versatile, encompassing goods transported by trucks, trains, ships, or aircraft.
Need a reliable and stress-free shipping experience? Ship with SFL Worldwide! Whether it’s domestic or international, we’ll handle your freight and cargo with care and ensure timely delivery at affordable rates. Let us take the hassle out of shipping so you can focus on what matters most. Get a quote today and make your shipping simple and worry-free!
FAQs
Can both freight and cargo include personal items?
Yes, both terms can encompass personal items. However, “freight” typically refers to commercial goods, whereas “cargo” can include both commercial and personal items, such as mail or personal belongings.
Does the term 'freight' imply transportation costs?
Yes, “freight” often refers to both the goods being transported and the charges associated with their transportation. Phrases like “freight charges” or “freight costs” are commonly used to denote shipping fees.
Are there specific modes of transport associated exclusively with cargo?
Traditionally, “cargo” is associated with goods transported by ships or aircraft. Terms like “cargo ship” and “cargo plane” reflect this association. However, in modern logistics, these distinctions have become less rigid.
How have the definitions of freight and cargo evolved over time?
Historically, “freight” was linked to land transport and associated costs, while “cargo” referred to goods moved by sea or air. Over time, the distinctions have blurred, and the terms are now often used interchangeably in the logistics industry.
Is mail considered freight or cargo?
Mail is typically classified as cargo, regardless of the mode of transportation. This includes letters and packages transported by air, sea, or land.
I’m Tammy Waller, a supply chain and logistics specialist with over 10 years of expertise. I’ve been an author and SFL employee for over 10 years.
As an author, I’ve been able to teach others. I love guiding users through supply chain and logistics operations.
I have substantial experience managing logistics operations, supply chain management, transportation, inventory management, and warehousing in shipping-moving and logistic services. I’ve worked on many worldwide logistics and supply chain projects, honing my abilities in negotiating rates, scheduling shipments, and managing vendors.
